not gdp because gdp is lousy. >> this could be the most important number of your lifetime. >> i've heard that in front of almost every fed meeting. >> maybe tomorrow it will be. >> rumors of two hours with adami, that's coming up. thanks allf y of you for watchi power starts now. it's not rumor, it's true. here's what's on the menu. breaking developments on the space x rocket explosion the latest headache for elon musk. ground zero rising how a rest ron tour is having a come back in lower manhattan. the one stock that is mm mess today. power lunch starts right now. i'm brian sullivan. stocks are well off session lows on this the first trading day and first day of september right

now. the dow the s&p and the nasdaq very little change, maybe a .1 or two down. also on our radar, walmart, reportedly cutting 7,000 back office jobs nationwide: that stock is ticking up a bit. tropical storm hermine bearing down on the gulf coast. could make land fall by toonnig. welcome everybody, guy adami is joining us for the two hours of power today. we're following a story out of cape canaveral florida. let's go live to the cape with the latest. >> reporter: hey, brian, take a look behind me, it's overcast because of that tropical storm that's making its way to florida. you can still see the smoke billowing out from the space x falcon 9 rocket that exploded earlier today on cape canaveral air force space station launch

pad 40. the falcon 9 was scheduled to take the satellite launch to take it into orbit this saturday at 3:00 a.m. that satellite was manufactured by israeli aerospace industries. but facebook had a $95 million deal to use it over five years for internet.org. this would have marked facebook's first foray into using satellites to beam down internet. facebook is saying we are quote, disappointed by the loss but remain committed to our mission of connecting people to the internet around the world. space kprvex saying there was a anomaly during a test launch. there were no injuries, this would have marked space x's ninth launch this year alone. it would have been the largest pay load to date for the space x

falcon 9 rocket. this is a set back for the company, including that planned falcon launch in california in coming weeks. guys, back over to you. >> morgan, thanks so much. today's explosion the latest headache in what has been a rough week for elon musk, shares of tesla are down 7.5% this week alone. >> i think a lot of people will look at this and say is this going to slow down tesla, everything that's going on with the proposed merger with solar city. no. keep in mind that elon musk while he is the leader of space x as well as tesla and he's the chairman at solar city, there's no cross pollination in terms of the financials between space x and tesla. so there's no implication there. now, you can make an argument perhaps he'll be distracted in terms of certain things he was planning to do with tesla, for example, the autopilot update we were expecting yesterday after he tweeted out but we haven't received yet. otherwise you cannot look at

this and say there's a financial link between the two of them. make no mistake, tesla has its own issues this week, especially when you look at the cash crunch the company is facing, we talked yesterday about this. they had an s-4 filing yesterday. and they said look, we will need to do some kind of a capital raise, whether it's equity, debt, whether it's a combination of both. here's why. they ended the second quarter $3.25 billion in liquidity. look at the expenditures that have happened or will happen in the second half of the year. the cash cushion could be down as low as $400 million and that's the reason why you will see tesla at some point in the second half of this year go to the equity and debt markets or both of them together and raise capital because they've got the expansion of their production facility as they get ready for the model three. they've also got a giga factory. they've got a lot of capital expenditures out there in

addition to overall expenditures that will be increasing and debt that's going to be increasing with the solar city merger. at the end of the day, i know some people want to talk about what's happening with space x, but tesla, it's in own separate entity right now. >> what seemed to be so interesting in terms of what came out of that filing is the notion that the capital markets are largely shut off from solar city. and that 15 institutional investors refuse to invest then we find out elon musk and his two cousins buy out the next week. that seems to be what is pulling the stock down today. >> i think everybody's looking at the debt equity ratio that's going to be in place at this company once it's all said and done. let's be clear here, as much as tesla is a cult stock and the people who invest in tesla. i'm talking about the retail

investors who we hear about on twitter and social media. as much as they love tesla, i'm not sure how many of them are looking at the implications in terms of the dilution of those shares and they have to raise more money. >> this something we've been talking about and the debt to equity ratio, it's about 146%. for solar city, 377%. >> sounds like japan and argentina back and forth. it's interesting, you know, i tried to be bullish on tesla and it's been right for long time and it's been wrong recently. a lot of people made compelling arguments to get out of the long shares last night. dei dan nathan being one of them. the last thing they needed today with headlines about the rocket, obviously down 4%. looks like to me now, and i'm a bull in tesla. it looks like the 180 level we traded down earlier this year is right in the crosshairs. >> stay right there. for more on tesla and auto sales

in general let's bring in the former vice chairman of gm. let's move aside from tesla. an interesting company and stock, i mean, they're a fraction of the u.s. car industry. i don't want to say irrelevant, but they're not far off that in terms of volume. what's your take on car sales generally? some said they didn't come in as good as expected. they still looked good, what's your take? >> i think what we're seeing is the industry leveling off at a very high level. the economic indicators for the rest of the year is still good. $17 million industry, if it remains there, is very, very healthy. august did show industry wide, not general motors, general motors was the opposite. but industry wide an increase in fleet sales and a decrease in retails. that's never really a good sign because it means that they're making the numbers, but the quality of the sales are not a good as they should be. >> i had kind of a it thought

this morning, which is always terrifying, bob, tell me if you think this is okay or total bunk. we, not cnbc, but the industry has been measuring car sales forever by the amount of cars we sell every year, 16 million, 17 million. i thought maybe that's a stupid way to do it. because -- hear me out -- a cars are lasting longer than ever. 100,000 miles, ten years that's nothing these days. b, cars are now so expensive that we can't expect people to buy the same number of cars as they have in the past. should we change the way we look at car sales to be more focused on profitability and revenue rather than just how many? >> well, that's certainly what gm is doing. gm no longer really cares that much about market share. they don't care about fleet sales. general motors fleet is way, way down. it's probably the lowest percentage of any major producer and general motors average transaction prices are now

$6,000 per unit above the industry average. that's the new focus of gm, gm continues to be highly profitable. and i expect that to continue as long as the industry remains at about 15 or 16 million units. you're absolutely right. i've always been against looking at the aggregate industry. you can maintain the aggregate industry numbers by forcing high incentives doing lots of fleet sales, lots of subsidized lease and all kinds of practices which give you sales numbers, but they don't give you any profitability. >> hey, phil, when i was looking at the auto sales numbers what surprised me, maybe not a surprise to you. the number one selling model the f 150 for ford. >> august of last year was a huge month for all of the

automakers, 6% is a comparison of august of this year with august of last year which was a huge year. one other interesting note about auto sales, guys, look at what the sedan sales are for the major automakers this year. ford down 27%. nissan down 25.5%. toyota down 11 .2%. they're skewing heavily towards trucks. their car sales are down, too. we could see in august for the first time ever in the u.s., car sales -- i'm not talking about overall auto sales, car sells relative to truck and suvs, only being 40% or less than 40%. >> who drives cars anymore, bob? >> well, that's the point. the crossover, which is, you know, sport utility shaped, but is based on a car platform and every manufacturer now has at least five or six in their program that has become the new family sedan. and the old three box sedan as

we know it, low, and with a hood a roof and a deck is definitely on its way out. so i think every manufacturer is going to start cutting back on those. and the crossover vehicle is the new norm. closely followed by pickup trucks and the enormously profitable full sized sport utilities. >> it's scary these days. >> i'm sorry? >> if you're not five feet up in the air off the road it's scary because everyone else is. >> that's true. if you look at it as the crossover vehicle, whether it's all wheel drive or front wheel drive only from a space utilization standpoint, really makes a lot of sense. they have a rear hatch, many have three rows of seats, the seats can be folded down. you can move large objects. they really are a much more intelligent form of transportation than four door sedans and coupes are.

>> they're more profitable for the automakers they're far more profitable than the car. with the exception of luxury sedans. the typical run of the mill, chevy or ford sedan, the crossover is far more profitable than the typical sedan. >> not to mention full sized trucks and sport utilities where the profitability is off the chart. >> we got to leave it there. we have breaking news. thanks so much. let's go straight to morgan brennan, cape canaveral. more details coming from elon musk via twitter. >> reporter: that's right. so elon musk chiming in on the space x explosion that happened. the space station there earlier today, so musk tweeting, loss of falcon vehicle doing during propellant fill operation, originated around upper stage oxygen tank, cause still unknown, more soon. musk is the founder and ceo of space x, again, we saw this rocket explosion this morning.

here just behind me, it's a bit overcast but you can still see the smoke billowing up. back over to you. >> morgan, thank you. morgan brennan, cape canaveral. turning to apple tim cook says he plans to bring back billions to the united states. he told an ireland station that the e.u. bill is total crap. here to join us is our own john fort. jimmy, i'll start with you. why do you think more u.s. companies will bring back cash now, even if the tax code doesn't make that palatable? >> i don't know if tim cook was crystal clear that he's going to bring back that cash no matter what. no matter what happens if we have a status quo. i think what he was doing was making it very crystal clear to lawmakers in washington that that money will come home. they're very willing to bring it home. every dollar europe gets will be a dollar they don't get.

with any sort of regionable -- i think any kind of reasonable tax reform, that money is coming back. of course lawmakers are dying to get their hands on whether for infrastructure spending or other things. he said there's a huge incentive for not only tax reform but any other kind of pressure washington can put on europe diplomatly to ea diplomatlyicical diplomatlyicically. >> apple's explanation to europe to why they're not getting more tax dollars, this money is ear marked for the united states. in the u.s. when there was pressure around apple paying taxes the focus was on revenue. the revenue is made overseas, it seems like there's a big pile of money and somebody's got to end up with tax revenue from it. you know, i try today raise this with people who is things from apple's point of view. once this starts getting paid out one way or another, the conversation takes a turn. he definitively say 2017.

he seems eager to get this resolved one way or the other. he's been meet ing with lawmakers on both sides of the aisle. who knows if he feels that perhaps the political environment is such that one way or another it will be easier. >> we're fighting between europe and the u.s. remember what png's beauty business did a few years ago, it moved to sing more. >> how could we forget? >> what's to stop singapore or malaysia to come in and say, really you're just a tax stop here anyway. come on over to singapore we'll give you 3% for the next 30 years. there's nothing stopping that from happening, ultimately we're talking about a mailing address. >> it's a great american company, brian. it can't go overseas, it's the essential american tech giant. capital will go where it's well-treated. and that's something lawmakers have to be aware of. you need to have a hospitable tax and regulatory environment.

and i think it's time that washington does that. washington is moving slower now than european bureaucrats and tim cook said, listen, we'll bring it back there's going to be a reasonable tax code. >> i get what you're saying about the great american company. that's ironic giving apple's keeping $231 billion in cash overseas because they don't want to pay great american taxes. >> it's willing to pay taxes. >> not as much, exactly. >> among advanced economies. >> i mean, who can blame them, really? 40%, there are very few people that argue 40% makes a lot of sense. it's a difference between a few single digit points between what the republicans and the democrats are saying would make sense. but apple is in a unique situation also, because tim cook has already testified in front of congress saying we don't play these games as far as where we're trying to domicile and those sorts of things. he's taken what he believes to

be the high road, so he's got to pay out one way or the other. he said to europe most recently this is ear marked for the u.s. >> does this matter to apple where it pays its taxes? >> i don't know if this is an apple story. the stock says it's not a story. the stock hasn't moved. what's the story? i think the story is, here's a company that made a deal with a sovereign nation 10, 15 years ago that was in the best interest of ireland and apple and somebody comes in from 30,000 feet and says this doesn't work anymore. it would be fine if they said going forward from here no more. you can't say that something -- i'll say one other thing. if i'm ireland i'm saying why do we need to be in the e.u. i understand it was easier for england to leave, you've got to believe this is another domino -- >> did you -- >> i did -- >> it's great looking shirt, by the way. >> big tech versus regulators, if you're going to get driverless cars, no matter who

you are you'll have to work with regulators in big countries, you don't want to tick them off. >> good point, thank you. the children's song says three is the magic number. but not for the fed. they no doubt have our magic number. and tomorrow's jobs number may push them to raise rates after the september 21st meeting. do they have one, if so, what is the magic number? steve leishman is with us to find out. ♪ there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. starting at $38,950. mercedes-benz.

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all right. welcome back. we are now less than 24 hours away from the latest monthly jobs number. if the fed is hanging its policy making hat on the august jobs figure, then is there a magic number that would get them to force their hand. steve leishman is here. you know the song i referred to. three is the -- it was a school house rock. >> i didn't know that. >> once again, brian you are in your own particularly place right there. i know you're happy. >> that's what you call it? >> that word may not be the perfect word. talk about the perfect number, first what the number is going to be for jobs and second what's that minimum number that would be okay for the fed to still hike and one that might force their hand. here's the data we're looking for. 180 is the consensus estimate.

the unemployment rate ticking down to 4.9 to 4.8. average hourly wages up .2%. and 180 is the estimate. it could be -- and i'm going from what i've heard, is 150 is enough for the fed to hike. 200 may force their hand. that's all if the other data cooperate. which is didn't today. a funny thing happened on a way to a hike. the ism put out a lousy manufacturing number. tim cook might have another name for that. the sector showed declines in production and employment. i don't think it's enough by itself to derail the fed if jobs are strong. it does give pause and if other data confirm a broader economic slow down we'll be talking about the probability of a december, not a september hike. >> what are the data points exists between jobs report and the actual meeting? >> got to have inflation

numbers, durable goods numbers. >> do you think any of those will be the ones to offset -- >> are you going to beach this weekend? think of like, a wave. if there's a preponderance of data, a wave of data that give you a tenor to the data of one way or the other. the fed will, i think take note of that. i think they want a hike. i think the balance is more towards doing the quarter point but they're not going to do it in the face of obvious economic weakness. >> larry sumers make a comment i was puzzled by. the fed loses credibility with their hawkish tone. i would think it was completely the opposite. where do you sort of stand on that? to me, if they don't move in september or december they've lost any semblance of credibility they have left. >> so my take is the fed is still nine months later in a hiking cycle. right, they haven't called that off. they're still in the process of normalizing rates.

they want to get back posativity when it comes to rates and see if they're still in that mode. i think they lose credibility if in the face of solid data on the inflation and jobs front if they don't hike. that's my take. >> thank you for your take it was an awesome milieu. >> i'm sorry to interrupt. back in the day we call it brian would be in his own personal fast masrket. >> i didn't hear that either. >> that's trade school. >> i'll write that down. >> up next a soupy stock mess. we'll be right back. guy will be missing.

all right. it's time for the good bad and ugly in today's stock market. let's do this thing. the good is inviddia. shares higher because there is news it is working on a self driving car. the bad, and it's an mmm bad day for campbells soup. the company missing estimates by four cents due in part to quote, execution issues with its campbell fresh business. ugly day for salesforce.com. the company saying profit estimates will come in below wall street expectations, shares as you can see down 5.45%. we're back in two minutes. hi, i'm henry winkler and i'm here to tell homeowners that are sixty-two and older about a great way to live a better rirement... it's called a reverse mortgage.

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patriotism in the schools. he commented on his trip to mexico on wednesday. >> i just came back from a wonderful meeting with the president of mexico. where i expressed my deep respect for the people of his country. and for the tremendous contributions of mexican americans in our country. and they have made tremendous contributions. >> guccifer and who helped expose the existence of hillary clinton's e-mail domain, was sentence today 52 month in prison. he pleaded guilty in may to hacking. facebook messenger is launching instant video today. it allows visitors to open up a video screen to see the person they're chatting with. audio can be turned on or left silent. the nfl announcing the 2017 draft will be in philadelphia. the draft was held in chicago the past two years, the first nfl draft was held in

philadelphia in 1936. it was last held in the city in 1961. and that's the cnbc news update at this hour. back to you, brian. >> and it's a good place, because the eagles may have the first pick. better we quiet i know jim is coming out. thank you very much. >> all right. let's get to the bond market. rick san telly is joining us. it's ve what's happening on the bear market? >> it won't help either team. if you look at an intraday of tens, you pointed it out ism numbers took the wind out of the the sails because it came back down in what was the august range. look at one week of tenure, you talk about a defined range and the traders are brave. it wasn't their number but it's all the same market. does that look awful similar? look at one week chart, their minus is 4 is like our 160 when it comes to what is a breaker. the coolest chart of the day

look at the intraday dollar index many were surprised it was holding up better than expected considering nobody believes the fed is hot. i don't know. one thing i can tell you the number also put a damage on the dollar index. but it's still holding more gains than any of the other markets based on stan fisher's comments friday of last week. melissa, lee, back to you. >> thank you. mylan, is back in the news the analyst commentary seems to back it up. >> it's been a topic of conversation since the epipen sprang into consciousness a come weeks ago. it's to create maximum return on leadership. what the wall street journal is focused on today is a special compensation program that is targeted to a goal of $6 in adjusted earnings per share by

2018. they also tie that to its stock price reaching $73.33 in order for at least 100 key employees to get this one time special bonus, essentially. now this is the $6 target is what people are calling potentially aggressive. and, you know, this idea that they have to increase the price of the epipen in order to get there. you can see here this is their adjusted eps over the last four years, that goal is $6 2018. they estimate it will come in at $5. we reached out to mylan for comment. and all the compentary they've been incentivized. they said the targets were not and are not achievable based on any pricing of any single product. it will represent less than 10% of revenues. and 600 products in the u.s. alone. as a result, their business

performance they say is not reliant on any one product or region. folk s i speak with, we had the former ceo of teva. they say a lot orf compensation is tied to stock price. in that drug industry that incentivizes it. >> it's a fair point that mylan makes. we had an outline of the list of drugs, a diverse portfolio of drugs for which they hiked the price in the first six months of the year alone. >> that's right. i think it goes to the broader discussion of the fact that, you know, executives are incentiv e incentivized to raise sales, one way to do that is to raise the price of their products and this happens a lot during the drug industry maybe it's time for a change. >> let's bring in the director of the university of delaware, center for corporate governance. great to have you with us and get your insights on this. if we had a compensation scheme

for executives -- i don't want to pick on the drug industry where the executives made x number of dollars no matter what the stock price said we might criticize that. where's the balance? >> there's nothing wrong with creating an incentive scheme linked to stock price. the question is how do you design it and avoiding something like this. raising prices to meet the scheme. i think that goes back to the board itself and how the board functions. i think that's the real issue here. did the board design an appropriate compensation scheme and are they in part responsible for this problem that mylan is facing. i think the article and journal seems to suggest they were. there are problems here in a way they operate. and the issue here has been this isn't the first time that this company's found itself in the middle of a governance problem.

there was a transition between the lead director and now the lead director in the company. and there was controversy when they nmoved today the neth rlands. you have to ask yourself what's going on inside this boardroom and is it time to rethink it. because it shouldn't be happening over and over and over. one controversy is bad enough. several controversies suggest there's another issue here. and i think that's what the article was pointing out. >> one thing people have brought up kind of with mylan is the idea this would be a good position for an activist investor to get involved. they have additional protection against any sort of overtures like that. how do you like at what they gained by moving to the netherlands and whether shareholders have a say in that. >> that's why the move was criticized. if you remember there was a

tussle involving teva at one point i believe and the question of the incorporation, obviously, in the netherlands factored heavily into it. and when another corporation in the united states might not have. that's why this is a governance issue. it is a little odd if you think about it, the status of the company is outside of pittsburgh. the directors come from there. why are they in the netherlands? it's a nice place to visit but an odd place for a company to incorporate, in particularly in this day and age given these controversies. you're right. it changes the responsibility metric. completely. >> it's interesting, incentives are ladened across not only every industry but in sports. just the word incentive do coaches do things they shouldn't do based on number of wins they need to achieve.

how do you trade mylan. forget how the government is complicit because there was no competition. number one. number two, how much is this going to hurt earnings? i've read anywhere from $0.25 to $0.50. it's probably going to earn close to $5.70 in 2017. take that down to $5.20. give them a nine multiple which is to me a trough evaluation and you're looking at a $48 stock. the headline risk is out there and the optics of the company have been awful. they continue to make missteps if you're looking at in terms of evaluation, you're at $41.50. >> thank you for joining us. just a quick question, by mylan rolling out a generic, have they lengthened the pipe line for their future revenues for the drug as opposed to letting it go to teva.

>> great question and one that people are still trying to figure out. are they going to do themselves better by introducing the generic, maybe keeping the generic competition at bay. good question. >> thank you. let's get to the market flash. >> diamond off shore shares, take a look at the stock nearing session lows, down almost 10% after the brazilian oil company canceled its drilling contract with the offshore driller two years early. the stock is the worst performer in the s&p today and shares are down nearly 20% year to date. which would be its fourth consecutive year of double digit losses, brian? >> thank you. still ahead, ground zero rising again. rest ron tour helping downtown new york serve up a big comeback. here's here. why he's investing millions in a lower manhattan revival. ♪

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verizon is increasing its dividend of 57 .75 cents per share. that's an increase of 2.2% from the previous quarter. the dividend yield had been 4.5%. this has been the year of dividend paying stocks, the sector doing not so badly. although in the past month they've lost steam. >> last month they lost steam. not coincidently the bond market is sawed off without getting into great detail. look at the stocks at&t and verizon, those stocks have traded sideways, all of a sudden they broke out. because there is this chase. i think these stocks are too rich and sell them despite the fact that verizon raised their

dividend. it's been 15 years since 9/11 and the the financial sector has been going to places it never was before. >> reporter: hi, there are a number of brand-new shopping destinations here in the financial district in new york city. which is all just part of the resurgence the area has seen in the 15 years since the 9/11 tragedy. just two weeks ago, westfield world trade center mall opened. there are 100 brands there, including kate spade, an apple store. not every brand is open right now. but we're told it is fully leased. and then the higher end brookfield place nearby has gucci, michael kors and to the east the sea port district will be open next year. it will have smaller markets folks that make custom leather.

and according to the downtown alliance for new york, lower manhattan has added two million square feet of retail space in the last two years, by 2019 the retail square footage is protected to hit a five year growth rate of 67%. and the rents are on the rise as well. financial district available ground floor average retail rent per square foot is up 96% in the last decade according to the real estate board of new york. and foot traffic is very important here, too. westfield estimates that 15 million tourists will visit this neighborhood next year. and then there's 13 subways and trains that shuttle 300,000 commuters every day through the world trade center station behind me. >> thank you very much courtney reagan, ground zero. i mean, listen more people that live downtown new york than have ever lived before. >> really? >> more retail. you've got -- in many ways it's better than it was before.

it's obviously different. and i think that for people that weren't there, i actually had breakfast in the world trade center the day before. and as an analyst, a great first name, by the way, and we had debated we were going to have breakfast. we had debated what day to have breakfast. we went back and forth monday and tuesday, monday and tuesday, i was in law school and i had an exam so we decided on monday. >> there's so many stories like that. a flip of the coin you decide one day versus another day. >> you know, and i don't think we all realized too if you weren't there how big the world trade centers were. how massive they were. it's taken too long but it's beautiful down there. and it's, you know, anyway, it's a tough story. well, shopping can make you hungry, if you're filling up bags downtown, be sure to fill up your belly as well. there is no better place to do that than eat-aly.

counter dining. it should be considered a must see. another two places to see it. its newest location is in new york city at 4 world trade center. joining us is one of the men behind it. joe, why have you and your team decided to invest millions in downtown new york? >> well, i mean, you know, as a new yorker, this place means a lot to us and it's a very emotional place. as you said what happened down here is truly amazing. the second eat-aly needed to be down here. we're happy to be partners in the rejuvenation of what's happening in the financial district. it's just a must. it's a fantastic place and the world will come through here in the next years. >> yeah, i mean it's really when you look at not only that, not only eatally but the retail

around it. is this now -- people don't know new york know -- they didn't realize downtown new york was the most uncool part of manhattan. you're downtown? do you think it's the hottest now? >> i think that it's a must visit, you know, along with the high line and what's happened in the meat packing district. it's becoming a point to visit. downtown, and eataly represents a part of the spirit of what's happening here, restoring this part of new york of giving these people something to eat. it's a place to shop. our focus has been on local. the residency, the amount of residential people living down here is also mind blowing. no one knew -- when we grew up in the 70s and 80s, no one lived down here, people worked down here. it was a ghost town. it's vibrant, it's full all the time and we're so happy to be here. >> with rents and the amount of money you have to spend just for space, how difficult is it to have a successful restaurant or

anything in the food business in new york city? >> it's becoming more and more difficult and you know, as the wage laws change, occupancy, the cost of commodities go up, the cost of energy goes up, we have to be better and better and more efficient to be able to do it. eataly is a special place, it's a global food concept. it's like bringing a piece of italy here to new york. we have an advantage, we're a marketplace with five sit down restaurants, 45,000 square feet. we have a unique advantage. but i'm a classical rest r restauranteur and the restaurant business, the margins are being clamped down and you have to be good. there's a thinning out of the market. a darwinism going on in our industry right now we see. and, you know, the best will survive. which is great for a consumer because those who can't make it go out and the best stay and the consumers are deciding where they want to eat. >> part of the top business of the restaurant business, joe, is probably managing the costs.

we're hearing more and more about food deflation, the cost of food is going down but labor is the pressure on margins at this point. how tough is it on the labor front? >> it is hard as you can imagine. what we've seen --seen, like, i in this business. i've been owning and running restaurants in new york for 30 years. i could never imagine that we could get to this point. i'm not saying i'm against it. i think everyone needs to make a fair wage and i think people need to be able to live in this city with the money they make, but it's becoming increasingly difficult. it's a very labor-intensive business. it's becoming increasingly difficult to sustain the structure with the wages we have to pay. so what happens? the prices of the products go up. and i'm sure new yorkers, tourists, everyone sees what's happening with pricing in new york. new york used to be a giveaway compared to london, moscow, tokyo. new york costs more now. it's a more expensive city and it's because of rents, real estate, and wages. >> joe, it's a real pleasure to get you back on.

good luck with eataly downtown. >> come down and see us at eataly and get a nice bowl of pasta and take some truffles home for your house. >> that sounds so good. >> done. be sure to catch cnbc tonight. jim cramer going inside the big comeback in lower manhattan after 9/11. "ground zero rising: freedom versus fears" airs tonight at 10:00 p.m. eastern on cnbc. and guys, not just because, obviously, it's our network and j jim is a friend and colleague, but this has been lauded by neutral sources as one of the best if not the best retroactives on 9/11. >> what a better person than jim to go down there and do that. a man who spent his career down there in lower manhattan. it's something, i will be watching j.c.. >> he'll join us later. jack mau says investors do not get his company and how fortunes for the world's biggest casino may have just turned. we'll have those stories, coming up. guys, what's happening here?

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welcome back to "power lunch." a couple of stocks on the move with china as the backdrop. first up, alibaba telling jack mau that unisyun that investors

don't understand his business. >> when people focus too much on the gmv, then they forget about that we have a much bigger business on the finance. we have a much bigger business on cloud computing. we have a much bigger business on the entertainment side. so, i think in the past two years, we are learning how to communicate with the investors. we're so, so popular in china. we have such a big household name in china. but investors in the states, they don't know anything about us. >> not understanding the business is kind of an issue for investors. >> yeah. >> but that's maybe what amazon was way back when. >> i think people are still trying to figure out amazon, and i think he makes some great points. they have a big cloud business, as well. whose fault is that quality it's incumbent upon investors to understand a business. but to a certain point, it's incumbent upon him to explain the business better.

so the fault doesn't lay just with u.s. investors. now to casino stocks. las vegas sands and wynn resorts both seeing some major gains after macau reported a 1.1% increase in gambling revenue last month. it is the first increase in more than two years. that's interesting, but we've got a lot of supply coming on in cothai now. >> a lot of supply coming on, but steve wynn put his money where his mouth was. when the stock started accumulating in the 50s, he started accumulating stock. and he's reaping the awards. good for him. i think wynn is a buy and i think it trades north of $100. las vegas sands, not as much. but wynn to me is really interesting. why? because steve wynn is a great operator. >> would you rather -- >> i love this game! brian, we played this game at 5:00! o 5:0 5:00! oh, you know the game. sorry, brian. >> brian's like -- >> would you rather, a company with more macau exposure like a

wynn or more las vegas exposure like an mgm. >> i would rather the former, a company with more macau exposure. gets you back to wynn. >> vegas. unlike you, i love this country. >> that's hurtful. unlike -- >> you're hurting the viewers with that shirt, man. >> i'm going to get up right now, go put a jacket on. somebody here's got a jacket. maybe steve liesman is still floating around. or -- i feel bad. i've got a whole hour left, too. >> that's what i feel like, too. donald trump delivering one of the most important speeches of his campaign last night, and today, one of his key hispan supporters is a supporter no more. he'll explain why, coming up. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out

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all right. welcome back. here's what's on the "power lunch" menu the rest of the hour. why a big trump supporter is a supporter no more. he's here. plus, a big call on one high-flying, small cap name. that stock is soaring now and already up double digits this year. and ground zero rising. freedom versus fear. jim cramer joining us live. the second hour of "power lunch" begins right now. and i'm melissa lee. let's get a check on the markets with two hours until the closing

bell, september getting off to a bearish start. take a look here. stocks extending their losses. we see the nasdaq peeking into the green. the s&p 500 touching their lowest level since august 3rd. it looks pretty quiet here ahead of that big jobs report meaning, but there are some big moves going on within the markets. we're watching financials very closely, backing off an august gain of almost 4% today. and also gold miners seeing a very big gain today. gdx higher by more than 20%. oil prices, let's take a look at those. sliding down by 3 full percentage points. the final trades are coming up. in the headlines this hour, japanese drugmaker takata pharmaceutical says it's developing a zika vaccine with the u.s. government. a romanian computer hacker has been sentenced to 52 months in prison. this hacker helped expose the existence of hillary clinton's private e-mail server. and elon musk tweeting about the space-x rocket explosion, saying the cause is still unknown. brian? let's turn now to the reaction to donald trump's immigration speech last night.

a member of trump's national hispanic advisory council resigning after that speech. we'll speak to him and ask him why in just a moment. but first, let's get the very latest with eamon javers in washington. >> it was a tale of two donald trump in terms of tone on immigration yesterday. first, in his trip to mexico city to meet with the president of mexico, donald trump speaking in very measured tones, a little above a whisper, at some point, off of prepared text, as he stood next to the president of mexico. here's what he said yesterday, in mexico city, when he was asked whether he told the mexicans that he would have to pay for the wall that he plans on building between the united states and mexico. >> we did discuss the wall. we didn't discuss payment of the wall. that will be for a later day. this was a very preliminary meeting. i think it was an excellent meeting. and we are, i think we're very well on our way. >> so trump says it wasn't discussed. the president of mexico later said that he did tell donald trump that the mexicans would

not be paying for the creation of any wall on the u.s. side of the border there. that was the measured donald trump. and last night in a rally inside the united states and a speech on immigration, trump sort of returned to form of what he's been saying on the campaign trail lothroughout the year. here's what he said in the united states. >> mexico will pay for the wall. believe me. they don't know it yet, but they're going to pay for the wall. >> reporter: so brian, an interesting strategy here by the trump camp. sort of, two different tones, projected by the same candidate on the same day, on the same issue. we'll see if that works for him or not, going into the fall. obviously, a whole lot at stake here, brian. >> there is. eamon javers, thank you. >> you bet. well, trump's plan not going over too well with some members of his hispanic advisory council, including immigration attorney, jacob monty. he publicly yanked his support for trump and resigned from his post after hearing his speech. he joins us now.

mr. monte, yesterday, you were 100% trump. you were touting mr. trump. what happened? >> i was touting him. i was defending him. i thought he heard us a week and a half ago when we talked to him about immigration. he certainly acted like he heard us. we were expecting a great speech. we were expecting a republican, pro-business, compassionate speech. and what we got was populist propaganda, written by fair members of usa, two disgraced think tanks in d.c. who view population as being overblown and being viewing people as pollution. so when i read those talking points, it was obvious that he did not hear us. and there was no way that i could continue to be part of his campaign. >> do you think the speech was a change, a distinct change in tone, jacob? or is it -- is it more of the same, and you thought he might strike a more conciliatory note

in the speech? >> well, when he met with us. he sounded like a businessman, a compassionate person, someone who had studied the issue. we saw hints of that donald trump in austin, when he had the town hall and talked with t crowd about what to do with the people that were not criminals and had strong ties to the u.s. that's the donald trump i thought was going to show up in phoenix. instead, we got someone who talked about security, and i'm all about security. you know, again, we don't have a problem with the wall. the wall protects us. we've got to send the bad people back. but there was nothing else. and we were promised a detailed, comprehensive speech. and what we got were talking points from populist groups. it was not a republican speech. it was not a compassionate speech. i was very disappointed and, i'm not going to be part of that. >> were you happy after hearing mr. trump's press conference

with the president of mexico? >> yes! so from 6:00 p.m. until the speech, you were fine. the speech is what did it for you? >> absolutely. >> he looked like a champion going to mexico. he look presidential. he was tackling the problem. that's who i thought was going to show up in phoenix. we did not see that person yesterday. so, yesterday was a tough day for me, especially, because there were many highs and one big low. >> are you getting the sense, jacob, especially from the people who also met with mr. trump at that town hall, that they have also pulled their support? >> well, i'm only speaking for myself. i know that there's a lot of republicans out there that don't want to vote for hillary, that won't vote for hillary. i'm a never-huillary person, bu

i'm not going down the trump train any longer. >> so you're not voting for anyone, jacob? >> not at the top of the ticket. i'm going to focus my effort and my resources on viable republicans that are down-ballot. and we can win those races and i'm not voting at the top of the ticket. not based on what i heard last night. >> what did you hear from other members of the latino and hispanic communities, jacob? when you come on networks like cnbc and support mr. trump, my guess is the reaction to you, phone, e-mail, texting, was probably not pretty? >> well, look, latino republicans, we're used to taking some ribbing from folks in our own community. that's all right. i joined this campaign because i saw him as a way -- as the one person who couldn't get immigration reform. the people i'm advocating for can't vote. there are millions of people that are doing jobs no one else wants to do. jobs that our economy needs. and they don't have a vote.

so i was reluctant to trust one candidate, hillary clinton, who has a terrible record on immigration, with their future. so, yeah, i sat down with donald tru trump. i thought he heard me. we gave him a plan. he didn't listen. so, you know, i'm just -- i see no alternative at the top of the it couldn't. >> you said you were never-hillary. are you never trump? >> never hillary, never trump. >> never trump as well? he cannot do anything to win your support back? >> well -- >> what would you say to him? as somebody who came out on national and supported him to the ends of the earth and now pulling your support back, what would you say to him right now? >> i would say, sir, you're a businessman. get rid of the populist advisers that are telling you that you need to be anti-immigrant. that's a losing strategy. we've lost two presidential

elections following that anti-immigrant rationale. not only is it a losing strategy, it's bad for business. most immigrants are law-abiding people doing jobs no one else wants to do. embrace them. that's the american dream starting a to the bottom. the speech was very bad also, because it disparaged immigrants that are welders, bakers, and butchers. they're doing jobs that people aren't able to do, because there are not enough americans or americans don't want to do those jobs. he made it sound like unless you have a college degree, that you're not worthy of being here. and that's just nonsense. >> jacob, we've got to leave it there. we do appreciate your time yesterday and we appreciate your time again today. thank you very much. i'm sure we'll chat again. now let's bring in a still-trump supporter, denise galvez with latinos for trump. she is still 100% behind mr. trump's plan. she joins us now. denise, i know you just sort of

popped in. were you able to hear anything of what mr. monty had to say? >> yes, i heard all of it. i've been hearing it all morning. >> what is your reaction? yesterday he was on this very show saying, 100% trump. today you just heard him. no trump? >> i feel like he watched a different speech. it's absolutely crazy to me. because the takeaway that i got was completely different. and i remember very specifically, hearing a line, close, you know, nearing the end of his speech, where he said that for the rest, after he called out, you know, the 2 million, the 300,000 that need to be deported, the 2 million that are here that are criminals, you know, i specifically remember him saying that he would handle the rest in a compassionate manner. so i'm not sure why -- i don't know what jacob is expecting, like amnesty for all of the rest, automatic? i don't know. i don't know what was discussed in those, you know, behind those closed-door meetings. but for the people that i represent, the latinos for trump who i communicate with day. a lot of whom are here legally,

who struggled and went through a lot of pains to get here legally, they 100% still support mr. trump, still after last night's speech. >> what did you like best about the speech, denise, and what advice would you give mr. trump to do better the next time? sort of the good and maybe the not-so-good of his speech? >> right. that's a great question. actually, everything that he said, the going into more details, is what we've all been waiting to hear for a long time. and those of us that have been supporting him since day one, pretty much expected exactly what we got last night. we were not surprised by, you know, his ten-point plan. i would say maybe people were expecting a little bit more detail and maybe specifics, even financially, like how things are going to be paid for. i know that the wall is a big point of contention on both sides and who's going to pay for it and obviously there's going to be a negotiation. but i've heard some great ideas from immigration attorneys here that support him. i have an incredible immigration

attorney here in miami who's very outspoken and is quite a figure and she still supports him, because she says for the last eight years, there hasn't been any path for any sort of legal status for these people. so anything that gets put in place is going to be better for her 10,000 plus clients that she represents here locally. and she still supports mr. trump. i think that they just want to know, you know, how are they going to pay for the additional i.c.e. that he mentioned. you know, the wall, obviously, financially, there's a lot of questions there. you know, how will mexico pay for it? she's actually suggested to me that there's a way to get it paid for, you know, in terms of labor, using actually detainees to put up the labor and that's a way for mexico to pay for it. there are still a lot of details we would like him to get into, and he probably will -- >> we're going to go, but you're still 100% trump? >> yes, absolutely. trump train, all the way. >> the trump train all the way, and she is on it. denise galvez, latinas for trump, have a great long holiday

weekend. thank you for joining us. >> thank you for having me. coming up, we'll tell you which stocks are the favorites of millennials. and we'll also get market advice from a man who manages $120 billion. listen to them both and decide who you trust. "power lunch" will be right back. what if a company that didn't make cars made plastics that make them lighter? the lubricants that improved fuel economy. even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better

and use less fl. helping you save money and reduce emissions. anyou thought we just made the gas. energy lives here.

well, this is a bit surprising. millennials have a taste for something you might not expect. high-dollar stocks. get this. according to a new study by td ameritrade, tesla and its $200 a

share price was a favorite among young investors. that along with the automaker include apple, netflix, amazon, and facebook. also according to td, a major theme with all millennial investors is they wanted to buy into a company which they felt had responsible business practices. >> although also on the list, valeant, freeport mcmoran. >> disney, which is interesting. what doesn't make sense to me on this list is chesapeake energy, cha, i don't know where that came from. although i can probably figure it out. here's a company that was trading north of $60 a few years ago. now at a certain point this year, it was trading two or three bucks. maybe their buddy said, hey, here's a name can double your money. i get that. i get disney. but freeport mcmoran, where do they come up with cpx. >> i think the common thread, they like stocks that whip around. so to me, apple is a head scratcher on this. >> but they all use it and want

to say to their buddies, i own apple. i understand they're not buying gm, ford, honeywell. because to them, those companies are boring and for people my age. >> you mentioned kleenex. i just checked to see if it was a publicly traded company on its own, but it's snot. >> it's not. >> melissa, you missed the whole thing, it snot. he didn't say, it's not. he said, it snot. >> i don't have my second grade humor cap on. >> let's bring jeff in. september's officially begun, as you know. there are only four months left in 2016, so how should investors be positioning their portfolios for the rest of the year? let's bring in jeff knight, who has a terrible sense of humor, apparently, because he agrees with brian on what is funny. >> thanks for coming on, jeff, have a great weekend. >> see you later. just kidding. >> did my job. >> at this point in time, which

sectors are do you favor most? you want to be in cyclicals, you want to be in financials, you don't want to be in the safe stocks. >> it's a good typical to be exposed until a little bit of everything, honestly. this has been a terrific year to be a well-diversified investor, i think for two reasons. i think, one, bonds have been excellent stabilizers for the few air pockets we've hit with stocks, to help stabilize portfolio, and two, because the more diverse assets like commodities or credit or emerging markets have done really well. i think we can go into the fourth quarter, go into the balance of the year owning a nice broad array of holdings. but that may not last for the full, even hot end of the year, because so many of these things have been so bit up in price, thanks to the easy money environment. >> jeff, banks. since february 11th, jamie dimon announced he was buying jpmorgan stock, it was 53 1/2 or so.

banks have been on fire. have they gotten ahead of their skis in the environment we're finding them in? >> they're just now breaking out. and the financials in general have been a sector that haven't participated so much in the rally. i think investors have been tiptoeing out on the risk curve. and as you get to the more volatile, maybe more of the millennial stocks, these haven't participated as much. if you look at the chart of the bank indices or financials in general, they've been sort of flattish for quite a while and are just now breaking out. it fits with the theme of the benign environment lasting a bit longer that those more aggressive holdings would do. >> but if we don't get the rate hike in september, does the -- for instance, i'm looking at the kre, the regional bank etf, it's up 7% in one month. that's the kind of run-up we're talking about in anticipation of a hike. if that doesn't happen, is it game over until the end of the year, when we do get that rate hike or becomes more apparent that it's actually going to happen? >> i think the messaging we're getting is that the fed would really like to hike at least one

more time this year. if we don't get a hike in september, it's not off the table for the balance of the year. i don't think you lose that story line. on the other hand, you defer the tantrum kind of environment that might take all risk assets down a little bit. >> you like emerging markets? >> i do. i think the trade off here, as long as the central bank policy stays benign and goes slower and takes longer, then some of the things that have been hurt by strong dollar and threats of rate hikes can continue to play catch-up as they have been most of the year. and that's our central case at the moment. >> real quick, in addition to that, energy has been on fire since that february date, as well. but that seems to be rolling over now. is it time to pull the rip cord in energy, or still another leg higher there? >> i still think another leg higher. it's -- i mean, it's hard to cause short-term commodity prices, obviously, but a couple things we've been following keep

us optimistic. one of them, importantly, is for financial investors like us, the role, the expense of owning synthetic exposure to commodities has become as friendly now as it's been for a number of years, and that tends to be correlated with stable-to-rising prices for the commodity. that's keeping us optimistic there. >> jeff knight, columbia thread needle. >> great sense of humor, too. outstanding sense of humor. tropical storm hermine already causing flooding in florida. you can see this video from st. petersburg last night. unfortunately, maybe about to get a lot worse. the very latest on the storm threatening florida, next. regardless of the conditions.e ♪ get great offers at the lexus golden opportunity sales event. t up to $5,000 customer cash on select 2016 models. ends september 5th. see your lexus dealer.

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to help you keep rolling with confidence. go long™. ♪ welcome back to "power lunch." i'm seema mody. keeping an eye on shares of hp enterprise. there's a report that hewlett-packard enterprise is in talks with buyout form tomo bravo to sell its software division for a price tag between $8 billion and $10 becoillion. that according to reuters. this does follow previous reporting that hx p enterprise was speaking to a number of

priva private equity firms about selling its software business. we're looking at shares higher by about 1.7% following this report. >> a quick comment? >> fire eye is up big today. it makes sense if hp is selling something off, do they get into cybersecurity? and if so, do they make an acquisition? i'm not saying it's fire eye. >> intel is looking to sell its software business to private business. mcafee. >> that's been out there for a while. >> resurfaced again today. >> where there's smoke, there's fire. something's going on in the space. >> but timing. hp's stock is up 43% this year. >> okay. >> don't you normally sell stuff off when you need help, you're not doing well, you've got a laggard, your fat uncle sitting on your couch and you need him to move out. that's who you sell off. >> you know my uncle. >> he's husky.

>> just big boned, guys. >> the stock's up 43%. tovo bravo has big stake in compuware and some other names you've never heard of. this would be the biggest deal by far they've ever done. but hewlett-packard's market cap is $45 billion. >> when we have jim cramer out here, i'll ask jim the question i just posed to wyou. >> i might have an answer to something that you guys were questioning. >> go. >> in that last segment about millennials. >> yeah? >> georgetown, harvard, poor public school kid, virginia tech. >> fine school. >> some hokie just e-mailed me and said, i figured it out. you said, wee freeport mcmoran and why chesapeake. >> i did say that. >> who owned all of those stocks? >> a duke guy. >> carl icahn. so this guy's opinion is that the reason those stocks are favorites among millennial, apple, netflix, chesapeake, freeport mcmoran, all big icahn

holdings. >> carl icahn has a millennial following? >> it's a thesis of up wione of viewers, currently a genius. >> undergrad or -- >> graduate! >> interesting theory. we have some new video coming in from the space-x explosion. it's shocking video. take a look at this. now, remember, earlier -- an hour and a half ago or so, elon musk had tweeted that the loss of falcon today happened during the propellant fill operation and it originated around the upper stage oxygen tank. and you can see there where that explosion actually happened. he did tweet that the cause is still unknown. more soon, but this is the latest video coming in from the falcon 9 explosion. tonight on cnbc, "ground zero rising: freedom versus fear." that premieres 10:00 p.m. eastern time. coming up, we'll talk to jim cramer about it and he'll introduce us to the only person who was a tenant in the twin

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great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. . i'm sharon epperson. here's your cnbc news update at this hour. a major magnitude 7.2 earthquake

striking off the coast of new zealand. according to the u.s. geographical survey. civil defense authorities in new zealand ordered the evacuation of some coastal areas due to fears of a tsunami. it's official. mosquitos in miami have tested positive for zika. health officials say it's disappointing, but not surprising. 47 cases of non-travel-related zika have been reported in florida. attempts to control mosquitos in south carolina apparently wiped out millions of honeybees. insect repellant was sprayed in summerville to kill off the mosquito population, but local buykeep beekeepers said they were not told of the aerial spraying until entire bee colonies started dying. and an experimental drug for alzheimer's shows early promise. it was found to significantly reduce plaques in the brain, which experts believe play a critical role in the development of the disease.

but the research is in its early stages. it's scheduled to be completed by 2020. that's a cnbc news update at this hour. back to you, melissa. >> thank you very much, sharon. let's check on the markets right now. the dow, take a look at this. a little bit lower here. the nasdaq is managing to stay in the green here, and the s&p 500 hovering just about at 21.67. pretty quiet session ahead of the big jobs report, but we're watching financials pretty carefully as it backs away from that big one-month gain in the month of august of more than 1%, and we're watching hp, hewlett-packard enterprises, after reports it's selling off its software unit to a private equity firm. oil prices, a big decline by 3.4% after yesterday's big drop. it has now been 15 years since the 9/11 attacks, events that changed thousands of lives, altered the course of history, altered new york. and in a new cnbc documentary, our own jim cramer introduces to us a man with a surprising connection to the old and also the new world trade center. >> yeah, one person who's actually bringing the business

back, that he had beforehand. i've got to tell you that it's a very stirring place, but it's still a place that there's a lot of fear. and i would have thought by this point, there would be more people who say, you know what, i really want to get back there. this is where i have successful business, but there are -- there's just a lot of people who think it's a target and i think that the fear is too great, but i did not feel -- i felt fearful when i came down. i think i was too fearful, when i first started doing it. you should watch. this guy is a terrific guy. he ran a small business, that i think is just kind of typical of what we didn't thi think was in the old towers. he escaped the building on 9/11, but like so many people, he didn't survive completely unscathed. listen to his story. >> we all lost friends that day. you lost a very good friend. >> yeah, jimmy, his name was jams martello. we grew up since we were 6 years old, three houses away, always

best friends, co-captain of the football team, the best man at my wedding, me and my wife loved him to death. this is jimmy's name here. >> just one of so many who died on the ground that day. it was overwhelming for greg. and for a long time, he couldn't bring himself to return. >> for five or six years, i avoided it like the plague, actually, because i was really shell shocked. it was hard. >> so many people felt that way. it's what he did next that really set him apart. >> yeah, he eventually did overcome his trauma and returned to the site. in fact, he is the only tenant of the world trade center that's also a trade in the new world trade center. and it's called that, not the freedom center anymore. and we have more on his story and about the rebirth of the iconic place. and i've got to tell you, we spent some time talking with new yorkers, for instance, with david remnick, and condi nest went in there, but they say they went in because they got special breaks, and i went to their

offices, and i thought, who would want to be there, and by the end, i was thinking, it was a very good move, because it's a safe building in an unsafe world. frankly, one of the themes that i felt, that stuck out with me, was in the time that i was doing this documentary, we had three separate terrorist attacks that were soft attacks, so to speak. and this building is a fortress. it's a fortress. >> jim, is it fear or do you think it's the fact that for a lot of people, it's hallowed ground and they just would feel bad being back there? >> split. i mean, i think there's some people who would say, how could you possibly build commercial, you know, kate spade, on a cemetery. basically on gettysburg, on arlington? but the answer is, that it was always there. it's a commercial area. there's an occulus that's a huge, expensive structure where the port authority comes up and people go to work. and throughout this, i was

questioning whether this was the right use. and in the end, i came out and said, it's kind of a messy democracy that we have. there are different interests that wanted to build, different interests that didn't. and it coalesced into something i want everyone to go through and make up their own mind. really very personal. initially, when i felt, when i went down, i thought, why would i want to be here? i work a couple blocks away. at the end, i came away and said, wow, what an amazing place to go to work. >> it's a beautiful building. >> it's beautiful. >> how occupied is it? >> it's still got a little ways to go. they're signing up a lot. it's another tower, because news corp. backed out, that is really that people are saying, they've got to fill that. but it's rae very busy down there. and i had gone to the museum -- >> you've got eataly now. and all the stuff around it, too. it's not a wayside, where you have a corner delhi -- >> that was the problem. when i went to the museum, which i was going to paychemake a dayw

york with the family, no, you can't do anything at the museum, because it's heavy. it's fabulous, but it tells the story. but it was a construction site. they asked me, can you do the doc. i had gotten lost. i lived downtown for 35 years and got lost trying to find the museum. it's all down. >> and not only do you work down there, let's take it back a little bit. what a lot of people may not understand, because it's been 15 years, is that the way that a lot of financial firms work is, is a lot of men and women live in the same areas. it sort of works out that way, and you had whole towns in new jersey, near where you live -- >> summit. >> wiped out! because you would have a lot of the companies, like, 50 of the guys happen to live in the sail town and their families were friends and their kids were friends. >> that's why the museum was so hard. we went to go look up all of our friends. we decided, that's what we're going to do. we wanted to show our kids who were little growing up, we want

to show them their families. and you get to a couple, and it's just very hard. it's just very hard. but, you know, obviously life goes on. i know that's one of the -- kind of a subtheme of the documentary. but, yeah, the museum is a must. geez. greg, the fellow we saw, he's someone who does tours for people. there's tremendous courage for just going. a lot of my friend won't go. a lot of my friends don't want me -- i have a friend who said, how can you do that documentary? >> i had breakfast in the lower part of the world trade center, what's it called, the winter garden, with an analyst the day before. and as i was leaving, there was a skyway above west street from the winter garden into the pure world trade center. and i remember walking, it was like 10:00 a.m. and this young lady coming towards me, very quick, i could tell she was in a hurry, she had a briefcase, she had a southern accent, she said, sir, can you tell me where the world trade center is. i said, you're about to go into it, just keep going.

she said, i have a job interview, and was going. and it was the day before, everyone's got these stories, but i always think, you know, i hope she didn't get a callback. just all those people -- >> it's one minute before it happens, what america was like. and then the next. and that's -- there's just rooms that you've got to just steel yourself to go through. >> by the way, the documentary, rave reviews. >> thank you. >> rave reviews in the media. it's a must-see, absolutely. >> i just want to say the team that do the documentaries here, they make you look good. >> they do a fantastic job. >> you're talking about mitch and wally and james -- >> the nicest people. they work so hard. and they don't get enough credit. >> that's true. >> surprise you came on when i was knocking needles a little bit earlier. >> the documentary is called "ground zero rising: freedom versus fear," that airs tonight at 10:00 p.m. eastern time on msnbc. it's must-see. >> and what's been nearly 50 years since man landed on the

moon, or did he? how much longer do we have to wait to get to mars? some experts think, it won't be much longer. we'll have that story coming up on "power lunch." americans are buying more and more of everything online. and so many businesses rely on the united states postalervice to get it there. because when you ship with us, your business becomes our business. that'shy we makeore ecommerce deliveries to homes than anyone else in thcountry. the united states postal service. priority: you

hey,esse. who are you? m vern, the orange money retirent rabbit froya. orange money represents the money yoput away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. ever since man landed on the moon, the next obvious step was

to send someone to mars. experts think that will happen eventually, but getting there will be easy compared to living there. morgan brennan's on florida's space coast. morgan? >> reporter: hey, i'll tell you one thing you probably won't have to worry about on mars is rainstorms and tropical storms like this. so nasa's looking to send a manned mission to mars by 2035, while some commercial start-ups, most notably, space-x, are looking to do it as much as a decade sooner. but for all the tens of billions of dollars, countless years of research that are going into sending humankind to the red pleasa planet, getting there, still the easy part. mars is, on average, 140 million miles from earth. but every two years, the planets get closer and are only about 40 million miles apart. so the mission needs to be timed to that. it will take ten months just to get there. >> our astronauts are going to have to be better trained and better equipped, yet, we have to do that with less volume and less mass and smaller amounts of equipment than we have on the

international space station. >> reporter: and vastly less support from mission control, due to communication delays. >> it can be anywhere from eight minutes, minimum, to about 22 minutes. there's an -- every 26 months, mars goes on the other side of the sun, so we've got about that two to three-week period where we're not going to be able to communicate at all. >> reporter: astronauts will have to administer their own health care, farm to get crucial nutrients, and find ways to keep from going stir-crazy. then there's the dust. lots of it. swirling in continent-sized storms yearly, big enough to be seen by earthly telescopes. perhaps most challenging, exposure to multiple forms of radiation, including galactic cosmic radiation, spun off by supernovas. the shielding required would be too big to launch into space, so scientists must find other options. >> there's a combination of things that are being done to address those, which include understanding the biological effects of that type of radiation, and seeing how we can mitigate those effects with

potentially pharmaceuticals or drugs. >> reporter: so, basically, nasa's matthew simon also saying, solving the martian radiation challenge is akin to curing cancer here on this planet. nasa says it's still going to take decades before we can callenize mars, and the early pioneers will have to go there and stay there, because there's a whole other laundry list associated with getting humans back off that planet, one of the biggest ones being generating fuel and finding a place to store it so that liftoff can take place. >> morgan brennan in port canaveral, thank you, and stay dry. >> i think morgan brennan will be at port canaveral for a few days. >> i'll go. in 2035, i'll be in my early 70s. i don't have a lot of real estate left after that. they should send me up. i'll be fit. >> you don't actually believe that men -- >> that's not true at all. we've been to the moon numerous

time times. >> on takeover talk, we'll tell you what company is doing that has one analyst boosting the price estimate on the stock. plus, oil sliding again today, is an even bigger fall to come? "trading nation" and "street talk," are next.

time for street talk, our daily dive into the analyst calls you need to know about. first off here, walgreens boots alliance getting added to the alliance at credit suisse. the chain now has 13,000 stores, 30% larger than cvs. walgreens and cvs, down about 14% year-to-date. most likely, mired in some concerns about pbm and the channel. >> right, but wba has this alliance with prime therapeutic, which a lot of analysts are starting to get their arms around. to your point, not a big valuation, 16.5 times. it sort of floundered for the last year or so, but at $81.50, i think it's worth a look at the

long side. >> let's do stock too, spectrum brands. ever heard of it? >> sure. >> it's not a household name. it's the parent company of armorall, rayovac, deet. the george deet. piper jaf ri starts with an overweight and $147 price. you have batteries and bug spray. strong capital position and the potential to do more deals and diverting to brand development. that target about 10% upside. >> you know what companies i loved in, ten years ago, first name, it's a similar type of company. right? ben jardin. >> roll-up. not the fruit. >> what would be your flavor? >> it's like eating pure sugar, though. >> a buzzkill. even 240 or 2:50. >> come on! >> spectrum brands. they love it. >> twitter, stock popping on takeover talk and mkm boosting

its fair value estimate with the potential of live streaming deals and could see a $1.2 billion in live streaming and mkm says is a make or break strategy for the company. >> seven or eight years ago, everybody hated facebook. they wanted out. z ck, he is no good. now you see the company. not saying twitter is facebook. i'm saying maybe the worst is behind twitter. i think it is. people think it goes lower. i think higher. i think it's headed to $23.50. >> wow. >> wow! >> bullish on twitter. >> listen. the problem -- you don't have to be a lot of things. i'm one of the people that is. >> good luck. >> new. >> finally the small cap name of the day, seacoast banking. it's a bank based on a seacoast. in florida. upgrading from a market perform. the analyst says the bank is about to ramp up to a

meaningfully higher profitability level. says the company is earning the independence but the potential of a sale also boosts the share value proposition. five analysts cover the name. 600 market cap names. they like it. seacoast banking, bank. based in florida. but kbw is bullish on it. >> symbol is enough reason to buy it. >> sbcf? >> seacoast banking. >> and financial. >> there you go. >> it is time now -- that was a boring under the radar stock by me. sorry. not a lot of analysts at work this week. time mow for "trading nation." let's look at oil. phil streibel, e rib gibbs. you know, erin, oil's kind of a tweeter of commodities and everybody thinks it's going to go higher. it must go higher because, because, because. and then it breaks your heart. >> there are rumors of u.s.

stockpiles. >> coming to a meeting and dance and everything is fine. yeah. >> yeah. exactly. nobody cooperates. so my concern is what's it mean for the energy companies? right? when you look at earnings estimates for the energy sector, that's stayed incredibly stable over three weeks and haven't seen any change and we also haven't seen any change in valuations. the energy sector's trading at about 42 times forward earnings and stayed completely flat for the past two months so when it comes to energy stocks, we are seeing a fair amount of stability. the energy sector's trading in a fairly tight range of 490 to 520 and right now in the middle of that range just like we are with the price of oil in between 40 and 50. as long as the price of oil kind of stays in the middle of the range, i think we'll see similar types of the index and right now i would n't say it's a buy. just right in the middle. >> you know, as i've pointed out, phil, many times, the

20-year, 30 adjusted price is about 40 to $50. we have been over $100 twice in 6 or 7 years. do you think there's a recent sy bias that they have it's got to go higher? this is where oil wanted to live for the better part of our lives. >> well, i mean, if you look at oil, again, it is like you've outlined it. over 50, too much production. below 40 opec starts to jawbone but if you take a step back and look at the larger picture here, new oil discoveries, at a 70-year low so opec, u.s. and russia, they've maxed out their jut put. our technology, i don't think it's better much better. peak oil theory talked about in the past. it's all been misses and i start looking at the longer picture. 95 million barrels a day is our current demand is. next year it will be 96. the year after, 97. i started to lock at the futures curve.

go out to december 2023. december 2023, that barrel is only at $55 a barrel. i think oil prices, there could be a situation where eventually, yes, we break out of this band and we break up over 50 and i think prices do go. i mean, inflation adjusted, we might be $70, $80, $90 come that time frame going forward. >> there's the bullish view on the price of oil. thank you very much. oil down in the low 43s again. for more, head to tradingnations.cnbc.com. "check please" is next. there's a denture adhesive that holds strong until evening.

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where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fuing the global enomy. and you thought we just made the gas. energy lives here. "check please." >> we have this video, this is the latest video come in of the space explosion, the explosion of the falcon ix spacecraft, the moment of explosion. this is the second loss of a spacecraft in just over a year for space-x. so this is just dramatic to show you again. no word yet on the precise cause of the explosion according to elon musk. >> terrible. there's a facebook satellite to be launched.

i think all of america can only hope for more successful launch next time and if so guy's shirt is on that space-x. >> see the way he went all serious. >> yes. >> brought us down and then -- >> fantastic delivery. >> great job. obviously, that virginia tech education and comed iic rhetori is paying off. fans, for the second year in a row, notre dame is most expensive tickets on the secondary market of $335. they got solid gold helmets. ohio state, $286. georgia, ucla on that list. i understand you still have -- i don't get georgia. probably disappoint once again. georgetown's football team -- >> don't mess with -- first of all, the head doing yoman's work

there. mel, one college football game. who are you going do see? quick! >> battle of bristol. >> alabama. what? what are you talking about? harvard-yale game? >> go to break. >> go to break? now you're producing. >> bossy, bossy. too bad you're back tomorrow. thank you for watching "power lunch." >> "closing bell" starts right now. note t ♪ he's back! i love that. welcome to the "closing bell," everybody. you are not down here, bill. >> no. i'm almost back. >> not fully up to speed yet. welcome back. i'll kelly evans doung here at the new york stock exchange and post 9. >> i'm bill griffeth at cbc headquarters and on that other show here on pbs. i'm looking forward to that very much. we have been showing you this chart it seems forever but it goes back to the month of june down to the brexit selloff.